$4.2 billion Zim sale includes rare “pay later” structure
Private equity fund FIMI will only pay Hapag-Lloyd after extracting $200 million in returns.
German shipping giant Hapag-Lloyd and Israeli private equity fund FIMI have submitted an application to the state seeking approval for their $4.2 billion acquisition of Zim.
The application, submitted to the Companies Authority and obtained by Calcalist, reveals an unusual financial structure: FIMI, set to acquire Zim’s Israeli operations and assume the obligations tied to the state’s “golden share,” will not make any payment for the business until it has realized at least $200 million in cash returns from its investment.
Last month, Zim’s board of directors, chaired by Yair Seroussi, approved the sale of the company to Hapag-Lloyd. In parallel, the German shipping group reached a separate agreement with FIMI, led by Ishay Davidi, under which FIMI will acquire Zim’s Israeli operations and assume all liabilities associated with the state’s golden share.
These obligations include, among other provisions, the state’s ability to requisition Zim’s fleet during national emergencies to ensure the continuity of maritime supply. While the parties have not disclosed the price FIMI will ultimately pay Hapag-Lloyd, the filing confirms that any payment will be deferred until FIMI generates $200 million in cash proceeds, either through dividends or a partial sale of its holdings. After that threshold is reached, Hapag-Lloyd will be entitled to 50% of any further realizations by FIMI.
The document also states that Hapag-Lloyd has guaranteed FIMI a minimum annual profit for several years, underscoring the risk-sharing structure of the transaction.
Under the agreement, the Israeli entity, effectively a new ZIM, will operate 12 ships and employ between 80 and 120 workers under their current terms. FIMI emphasized in its submission that it will comply fully with the requirements tied to the golden share and highlighted the military backgrounds of its senior executives. The fund also noted that it does not intend to use bank financing for the acquisition.
FIMI is executing the transaction through its seventh fund, which raised $1.25 billion in 2021.
